Discuss the term Supply Chain Management (SCM) and the trend of the Bullwhip Effect in times of increasing fluctuations in inventory in response to shifts in customer demand as one moves further up the supply chain.
Review the following two files to assist with writing your post.
– Lee20120tamingthebullwhip
– LeePadmanabhanWhang1997
Please see attached for more detail.
by
TrilokChand` Veeranki
Supply chain management is the most important for any production-based industry which links with the financial chain that is the turnover of raw materials along with the supply of goods. If the fluctuation of this aspect causes damage then it will affect the overall planning of the financial chain. The bullwhip effect is one which can be mentioned to be a scenario where this can be mainly scened as we can see a chain effect when we move the whip it will have a major ripple to the end.
So this is a situation which should be avoided at all costs to keep the business stable the main cause of the bullwhip effect is there due to small changes in the downstream management which cause a ripple that clashes with everything. The causes are forecast failure for demand, price fluctuations and many factors.
To manage this we have to have a better planning process throughout the whole downstream supplies and our own inventory.
1. Understand the Bullwhip effect
2. Control the inventory.
3. Control the raw materials.
4. Have better teamwork between departments.
5. Uniform pricing.
These steps we have to take are some conditions in our process area which we can manage but we have to consider the areas which are not in our control like wholesaler demands, consumer demand which come into the forecasting category so we have to caution these around 10 to 30 percent in a the margin which will better improve. Do not move according to the order by the suppliers just take the past records on the supplier inventory and move so that the excess will not be a problem and the consumers do not change patterns unless a major change is being done.
A better example of effective SCM is Apple where the parts are many but it manages a tight ship in delivery and inventory. So we can see manage systems with better effects can be seen with improvement on our side and streamline our process.
References
O’donnell, T., Maguire, L., McIvor, R., & Humphreys, P. (2006). Minimizing the bullwhip effect in a supply chain using genetic algorithms. International Journal of Production Research, 44(8), 1523–1543.
https://doi.org/10.1080/00207540500431347
Éder Vasco Pinheiro, Enzo Morosini Frazzon, Leonardo Sgnaolin, & Luiz Henrique Souza Mendonça. (2016). A beer game simulation model for studying the impact of information sharing to diminish the bullwhip effect in supply chains: an educational support tool in supply chain management. GEPROS: Gestão Da Produção, Operações e Sistemas, 11(2), 53–66.
https://doi.org/10.15675/gepros.v11i2.1392
Giard, V., & Sali, M. (2013). The bullwhip effect in supply chains: a study of contingent and incomplete literature. International Journal of Production Research, 51(13), 3880–3893. https://doi.org/10.1080/00207543.2012.754552
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
TAMING THE BULLWHIP*
Lee, Hau L
Journal of Supply Chain Management; Jan 2010; 46, 1; ABI/INFORM Complete
pg. 7
Week 9 Discussion: Running a Supply Chain
Students must discuss the term Supply Chain Management (SCM) and the trend of the Bullwhip Effect in times of increasing fluctuations in inventory in response to shifts in customer demand as one moves further up the supply chain.
Review the following two files to assist with writing your post.
· Lee20120tamingthebullwhip
· LeePadmanabhanWhang1997
(Students must use academically reviewed articles only). Wikipedia and other internet articles will not be accepted. Professor will check originality of all posts with Turnitin plagiarism checker).
Use full APA throughout (use in-text citations and a APA reference list). Post your responses in the body of the discussion area.
Read and respond to at least two (2) of your classmates’ posts 150 words minimum. In your response to your classmates, consider comparing your articles to those of your classmates. Research from academic articles must be included in your responses to classmates post.
Below are additional suggestions on how to respond to your classmates’ discussions:
· Ask a probing question, substantiated with additional background information, evidence or research.
· Share an insight from having read your colleagues’ postings, synthesizing the information to provide new perspectives.
· Offer and support an alternative perspective using readings from the classroom or from your own research.
· Validate an idea with your own experience and additional research.
· Make a suggestion based on additional evidence drawn from readings or after synthesizing multiple postings.
· Expand on your colleagues’ postings by providing additional insights or contrasting perspectives based on readings and evidence.
Shilpa Sunil Rokade
Supply chain management is often confused with logistic management. The former is a sub-group of supply chain management. Supply chain management consists of all the processes that take place to plan and effectively manage sourcing, procurement, logistics, and all related activities. In-depth, it consists of a thorough collaboration and coordination of different departments within the supply chain management like suppliers, manufacturers, intermediaries, third-party services, and customers. These days with changing trends in user buying behavior, the supply chain has also evolved. The retail and e-commerce firms with huge supply chain management department often compete, not as a company but as a supply chain management department (Lau, Ng & Acevedo, 2019).
Taming the bullwhip in the supply chain is a very famous term in the past few decades. It necessarily means that instead of just fulfilling customer orders as they arrive, one should not the back story. In other words, one should be well aware of the swings in demands and hence be ready to adjust their supply chain accordingly to be more effective, optimized, and save revenue lost due to the inefficiencies in the supply chain caused by the bullwhip effect (Lee, 2010).
While there are many causes of a bullwhip effect, some important ones include demand forecast updating, order batching, price fluctuation, rationing, and shortage gaming. To avoid multiple demands, forecast update, one must avoid doing different forecasts at different levels in the organization. One must make sure that the same raw data is available for all the departments so that there are data transparency and efficiency. To avoid gaming during shortage situations, companies can follow tactics wherein instead of allocating products based on orders, they can allocate based on past sales records. To avoid the bullwhip effect caused by batch ordering, one can employ many methods like creating smaller sub-orders, distributing the load in multiple trucks, and using other third-party transportation logistics in order to fulfill these untimely large orders (Lee, Padmanabhan & Whang, 1997).
Reference
Lau, Y., Ng, K.Y. A., & Acevedo, J. (2019). Principles of Global Supply Chain Management. Anthem Press.
Lee, Hau L., Padmanabhan, V., & Whang, S. (1997). Sloan Management Review
Lee, Hau L. (2010). Journal of Supply Chain Management
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
The Bullwhip Effect in Supply Chains
Lee, Hau L;Padmanabhan, V;Whang, Seungjin
Sloan Management Review; Spring 1997; 38, 3; ABI/INFORM Complete
pg. 93
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
Directions for Discussion Questions
Students will respond to the Discussion Question in full APA format
Discussion initial post 300 words is due by aforementioned dates and times
If your posts is less than the minimum word count, points will be deducted from your grade.
•Provide appropriate APA in-text citations and references.
Coping and pasting an article or copying the information and changing a word or two is not a significant post. If you do this, you will receive a 0 for the assignment—no questions asked.
The format should include an introductory paragraph which introduces the topic (12-15 lines), the body which is usually 2-3 paragraphs (12-15 lines each paragraph) and a summary paragraph (12-15 lines) which restates the main points.
Absolutely no Wikipedia, Blogs, Internet Articles, Homework Help, Books or other Chron/Investopedia etc. Journal Articles sourced from the Campbellsville University Library should be your research source.
For APA formatting use APA Manual or www.purdueowl.com
Directions for Response to Discussion post
Students will respond to the Discussion Question in full APA format
•Significant posts are at least 150 words and require some information from the text, academically reviewed papers, some significant commentary that requires knowledge of the subject, a web link to an article or other source in order to be accepted.
If your posts is less than the minimum word count, points will be deducted from your grade.
•Provide appropriate APA in-text citations and references.
Coping and pasting an article or copying the information and changing a word or two is not a significant post. If you do this, you will receive a 0 for the assignment—no questions asked.
Absolutely no Wikipedia, Blogs, Internet Articles, Homework Help, Books or other Chron/Investopedia etc. Journal Articles sourced from the Campbellsville University Library should be your research source.
For APA formatting use APA Manual or www.purdueowl.com
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